Budget 2025-26 LIVE: Zero income tax till ₹12 lakh income under New Tax Regime

Saturday morning came with a sweet tradition as Finance Minister Nirmala Sitharaman reached Parliament with the much-anticipated Budget 2025-26 after eating dahi-cheeni from President Droupadi Murmu at the Rashtrapati Bhawan.

Budget 2025-26 LIVE updates 

Income Tax New Regime

Zero income tax till ₹12 lakh income under New Tax Regime

Slabs and rates being changed across the board to benefit all tax-payers

New structure to substantially reduce taxes of middle class and leave more money in their hands, boosting household consumption, savings and investment

Nil tax’ slab up to ₹12 lakh (₹12.75 lakh for salaried tax payers with standard deduction of ₹75,000)

Check new income tax slabs

Safe harbour for Non-Resident India (NRI) 

Tax certainity for NRIs who store components for supply to specified electronics manufacturing units.

Things yo get cheaper   

Mobile phone

EV car

LED TV

Mobile phone battery 

Many drugs 

Electronic devices 

Leather jacket 

36 cancer drugs

"I propose to rationalise Tax Deduct at Source (TDS) by reducing number of rates and thresholds above which TDS is deducted," said FM Sitharaman.

The limit for tax deduct is being doubled for senior citizens from present ₹50,000 to ₹1,00,000. Additionally, the annual limit for TDS on rent, currently ₹2.4 lakh, will be increased to ₹6 lakh," she added.

FM announced PM Dhan Dhanya Krishi Yojana, that will benefit 1.7 crore farmers.  The PM Dhan Dhanya Krishi Yojana will enhance agricultural productivity, adopt crop diversification, augment post-harvest storage at panchayat and block levels, bolster irrigation and improve availability of short and long-term credit.

“PM Dhan Dhanya Krishi Yojana will benefit 1.7 crore farmers and aims to create ample opportunity for rural areas so that migration becomes an option, not a necessity," the Finance Minister noted.

36 life-saving drugs for cancer, other rare diseases fully exempted from customs duty.

The FDI limit for the insurance sector will be increased to 100%. The enhanced FDI limit will apply to those who invest the entire premium in India," announced FM Nirmala Sitharaman. 

FDI in insurance increased from 74% to 100% provided premium is paid entirely in India.

To promote nuclear energy and invite private participation, FM Nirmala Sitharaman announced ‘Nuclear Energy Mission’ with an outlay of ₹20,000 crore.

The Nuclear Mission for Viksit Bharat, aiming to achieve 100 GW of nuclear power generation by 2047. To encourage active private participation, the Centre plans to amend the Atomic Energy Act and the Civil Liability for Nuclear Damage Act.

The Finance Minister said that the National Manufacturing Mission would support clean tech, and build an ecosystem for solar cells, EV batteries, and high voltage transmission equipment manufacturing at the local level.

Union Budget 2025-26 will initiate reforms in six areas of taxation, urban development, mining, financial sector, power and regulatory framework.

 "A deep tech fund of funds will also be explored to catalyze the next generation of startups as part of this initiative. Over the next five years, under the PM Research Fellowship Scheme, we will provide 10,000 fellowships for technological research in IITs and IISc with enhanced financial support..."

"I propose to introduce New Income Tax Bill next week. I will detail the indirect tax reports and changes in direct taxes," says FM Sitharaman.

Udaan scheme will be modified with 120 new destinations will be added. ₹4 crore new passengers envisaged in next 10 years.

Investing in research, development and innovation

 ₹ 20,000 crore for private-sector driven Research, Development and Innovation initiative announced in the July Budget

"Reforms in the urban sector will be incentivised, with the establishment of an Urban Challenge Fund of Rs 1 lakh crore to finance up to 25 per cent of bankable projects, FM said. 

Additionally, a second plan for 2025-30 will be launched to reinvest Rs 10 lakh crore in new infrastructure projects," announced Nirmala Sitharaman.

Focus product scheme for footwear & leather sectors is expected to facilitate employment for 22 lakh persons, turnover of ₹4 lakh crore and exports of over ₹ 1.1 lakh crore   

The Kisan Credit Card limit increased to ₹5 lakh which was ₹3 lakh earlier: Finance Minister Nirmala Sitharaman

National Institute of Food Technology, Entrepreneurship and Management to be established in Bihar

Will strengthen food processing activities in the entire eastern region

• It will increase the income of farmers by improving the quality of their produce

• Will create opportunities for youth to acquire skills, entrepreneurship and employment

Finance minister said that the government's contribution of ₹10,000 crore will fund the startup. He also said that for the first time, the government will provide ₹2 crore loans to five lakh women, SC and ST entrepreneurs.

"Centers of Excellence in AI for education will be established with a total allocation of ₹500 crore," announced FM Sitharaman. Additional infrastructure will be created in five IITs created after 2014, to facilitate education for 6,500 more students. Facilities to be expanded at IIT Patna.

Samajwadi Party stages walk out Samajwadi Party Chief Akhilesh Yadav says, "The budget is being presented today, but it should not disappoint the common people..." National Action Plan for Toys "India to be a hub of sustainable toys manufacturing," says FM Sitharaman. "A nation is defined not only by its land but by its people. Budget 2025 covers 10 key areas, with a focus on the poor, youth, farmers, and women. Agriculture, MS

"A nation is defined not only by its land but by its people. Budget 2025 covers 10 key areas, with a focus on the poor, youth, farmers, and women. Agriculture, MSMEs, investments, and exports serve as the driving forces for development," said the FM.

Ministry of Micro, Small & Medium Enterprises  (MSME) to be the second engine, as it contributes to 45% of exports. 

'Makhana Board' to be established in Bihar to assist Makhana farmers. 

Our economy is the fastest-growing among all major global economies. Our development track record of the past 10 years and structural reforms have drawn global attention. Confidence in India’s capability and potential has only grown in this period, says Sitharaman.

The PM Dhan Dhanya Krishi Yojana aims to boost agricultural productivity, promote crop diversification, strengthen post-harvest storage at the panchayat and block levels, enhance irrigation facilities, and improve access to both short- and long-term credit:  Union Finance Minister Nirmala Sitharaman

The scheme is expected to benefit 1.5 crore farmers. "Our goal is to create sufficient opportunities in rural areas so that migration becomes a choice rather than a compulsion," the Finance Minister stated.

"Budget 2025-26 focuses on gareeb, youth, annadata, and naree," said FM Sitharaman.

Amid the choas from Opposition in the Parliament, Union Finance Minister Nirmala Sitharaman begins presenting her 8th consecutive Budget in Parliament.

"We do not have high expectations from the budget: Jairam Ramesh  

Congress MP Jairam Ramesh said that while they do not have high expectations from the budget, some major announcements could help encourage private investment."

The President fed her 'dahi-cheeni', a ritual performed by elders in Indian families to bestow good luck before undertaking important tasks.

Watch Budget 2025-26 LIVE

The unveiling of the Economic Survey on Friday set the stage for FM Sitharaman to present the Union Budget for 2025-26 in Parliament on Saturday. 

This year's Budget is the eight consecutive Budget for Finance Minister Sitharaman and the Modi government's 14th straight Budget.

Earlier in the day, FM Sitharaman and her team posed for a traditional picture outside the Finance Ministry. She wore an off-white coloured handloom silk saree with fish-themed embroidery and a golden border - a tribute to Madhubani Art. She wore a red blouse with the saree and displayed the red 'bahi-khata' tablet with the national emblem.

In 2019, FM Sitharaman broke the long-standing tradition of a Budget briefcase with a 'bahi khata,' a red-coloured Indian accounting ledger. In 2021, the Finance Minister presented the Budget in a paperless format, using a 'Made in India' tablet.

Nirmala Sitharaman, who surpassed the record of former Prime Minister and Finance Minister Morarji Desai last year, is set to present the Union Budget for 2025-26 in Parliament on Saturday.

Finance Minister Sitharaman will deliver the Budget speech in the Lok Sabha from 11 a.m. on Saturday.

The Budget Session of Parliament which commenced on Friday, will be conducted in two phases - the first started on January 31 and will conclude on February 13, while the second phase will begin on March 10 and end on April 4.

This year's Union Budget is expected to maintain the government's focus on promoting economic growth while ensuring equity.

The government is expected to prioritise improving the quality of life in rural areas to ensure equitable and inclusive development.

According to the Economic Survey 2024-25, financial inclusion is a key focus, with rural households and small businesses getting easier access to credit through microfinance institutions, self-help groups and other intermediaries.

(With inputs from syndicated feed)

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Budget 2025-26 by FM Nirmala Sitharaman: The A to Z of terminology